Late last year Baidu acquired a majority stake in its loss-making online video unit, iQiyi. China's online video industry is hyper-competitive and content costs are expensive. In early 2012, Youku Tudou Inc YOKU.N acquired Tudou in an all-stock deal, making the newly formed company the largest online video player in China.

When acquired, PPS and iQiyi will continue to operate as independent brands, but will share back-end technical integration, the newspaper reported.

A Baidu spokesman declined to comment and a PPS spokesperson could not be reached for comment.

FRANKFURT German semiconductor chipmaking machinery company Aixtron is considering reducing the size of the business with a partial sale, its chief executive said in an interview published on Friday, opening the door for bidders after a deal with a Chinese firm collapsed.